Major Business Win Sparks Stock Rally
Shares of Patel Engineering Limited witnessed a spectacular surge on Thursday, November 27, with the multibagger small-cap stock skyrocketing over 16% during intra-day trading. This powerful rally was triggered by the company announcing a significant business achievement—the securing of two major Letters of Intent for substantial excavation and coal-handling operations.
Project Details and Financial Impact
According to an official filing with the stock exchanges, the contracts were awarded by Saidax Engineers and Infrastructure Pvt Ltd. These orders are for a critical project of South Eastern Coalfields Limited (SECL) located at the Jhiria West Open Cast Project within Chhattisgarh's Hasdeo mining area. The combined value of these prestigious contracts stands at a formidable ₹798.19 crore, exclusive of applicable taxes.
The scope of work encompasses comprehensive mining operations, including large-scale overburden removal, coal rehandling, precision coal cutting using advanced surface miners, and the complete loading and transportation of coal. The company will also manage the deployment, maintenance, and fuel supply for all necessary machinery and labor. With an execution timeline stretching nine years, this project provides Patel Engineering with exceptional long-term revenue visibility and business stability.
Management Perspective and Future Outlook
In an attached press release, Patel Engineering emphasized that these new orders significantly reinforce its established position in executing complex infrastructure and mining-linked projects. Managing Director Kavita Shirvaikar expressed enthusiasm, stating: "These new projects represent a natural extension of the large-scale infrastructure works we undertake and also open up new avenues for growth."
Shirvaikar further revealed the company's robust future prospects, highlighting a strong tender pipeline exceeding ₹34,000 crore. Additionally, the company anticipates another ₹18,000 crore in opportunities during this financial year, with nearly ₹1 lakh crore worth of projects expected to come up for bidding within the next one to two years.
Stock Performance and Financial Health
The market responded enthusiastically to the news, propelling the small-cap stock to an intra-day high of ₹38.60, marking a impressive 16.4% jump. This surge occurred on a day when Indian benchmark indices, Nifty 50 and Sensex, also scaled new record peaks.
Analyzing the stock's trajectory reveals a compelling story. While the scrip remains approximately 35% below its all-time peak of ₹59.50 reached in December 2024, it recently touched a 52-week high of ₹31.60 earlier this month. The stock, which is part of ace investor Vijay Kedia's portfolio (holding 1% stake as of September 2025), has delivered mixed returns across different timeframes. It has declined 35% over the past year and 8% in the last six months, but has shown recent recovery with a 3.5% gain in the past month. Most impressively, Patel Engineering has delivered multibagger returns of 227% over a five-year period.
The company's financial foundation remains solid, with an order book standing at ₹15,146 crore at the end of Q2FY26. The hydroelectric segment dominates this portfolio, accounting for 62% of the total. Key ongoing hydro projects include the massive Subansiri HEP (2,000 MW), Dibang Multipurpose Project (2,880 MW), Kiru HEP (624 MW), and Arun-III Hydro Electric Project (900 MW). Beyond energy, Patel Engineering is simultaneously executing 21 irrigation projects valued at ₹3,023 crore, strengthening its footprint across crucial water and power infrastructure sectors.
For the quarter ending Q2FY26, the company reported consolidated operational revenue of ₹1,208 crore, showing a modest 2.91% year-on-year increase. However, operating performance showed some softening with Operating EBITDA declining 2% YoY to ₹159 crore. The EBITDA margin also experienced a slight contraction to 13.31% from 13.81% in the corresponding quarter last year. Net profit for the quarter settled at ₹77 crore, down from ₹80.7 crore in the same period last year.
Established in 1949, Patel Engineering brings over seven decades of expertise in hydropower, tunneling, and irrigation projects. The company's impressive track record includes the completion of more than 85 dams, 40 hydroelectric projects, and over 300 kilometers of tunneling, primarily for central and state government agencies, cementing its reputation as a trusted infrastructure partner.
